MI HB5119

Creates a work opportunity tax credit for tax-exempt 501(c) organizations beginning January 1, 2026, equal to 50% of the federal work opportunity tax credit amount under Internal Revenue Code section 51

Applies the credit against state income tax withholding that employers must remit, claimed on annual withholding returns

Limits eligibility to qualified wages paid to Michigan residents who have been certified by the Michigan Unemployment Insurance Agency as members of a targeted group

Prohibits refunds if the credit exceeds the employer's withholding tax liability and excludes carried-back or carried-forward unused credits from the calculation

Takes effect only if House Bill 5118 of the 103rd Legislature is also enacted into law